Charlotte Foreclosures

Home Foreclosures in Charlotte are an unfortunate fact of life in 2009.

This is a VOW Search, or Virtual Office Website, AND VOW’s ARE DIFFERENT. They are complete access to the MLS. Our standard IDX Charlotte home search is on the search all Charlotte homes tab lower right. If you’d like more general information on REO’s, Foreclosures, and Short Sales, scroll down.

Here’s a Quick Search Charlotte Foreclosures – this search is map based, includes short sales

You may just want to e mail me your question, that’s fine too, that is Terry at TerryMcDonaldRE dot com. Have to do this the bots are relentless.

VOW’s show all homes for sale, then you may filter with the foreclosure search, which includes any listing with the mention of Foreclosures or Short Sales. You may also filter the VOW’s to just search for New Homes… An example and screen shots are below.

Once confined to the lower income areas, they have spread across Charlotte affecting every neighborhood, albeit unequally-the nicer neighborhoods have had far fewer foreclosures. Until now, the local MLS had made it almost impossible to Search Charlotte Foreclosures. The search in the link above  is brand new, as far as I know the first in Charlotte, and it isn’t “pay per view”  but, by agreement at the national level, it requires a signup. This was not my call-and they verify email’s so don’t waste your time with a fake one.  And you have to agree to terms not to re-sell or repackage the information in any way….but its worth it! And We Will Never give or sellyour info, and we don’t spam.

I searched for Lake Norman Foreclosures, I got this map below

Then, lets look at this one out on the Peninsula- beautiful Waterfront – it spent the first half of 2009 listed between 3.4 and 3.9M

Now, lets look at the details-note the exact square footage, and the cumulative Days on Market

Unfortunatley even this cumulative DOM misses the prior sales info- that had to be researched- be casue it was off the market a sufficent time to not be counted. But this DOES give Cumulative DOM as long as its only off hte market a short while.

This Virtual Office treats you like you are my customer. The registration and terms of use, again not in my control, obligate me to you, but not vice versa.  We act as Buyers representatives to you, and we won’t show you a home with our name on it. You are under no obligation to us- except you can’t sell the information-it is we who are under obligation to you- to do our best by you, to watch your back.

Enjoy! Happy House Hunting!  If  you’s like to learn more about Foreclosure, REO and Shorts Sales, scroll down.

Here’s that Quick Search link:  Charlotte Foreclosures

Charlotte Foreclosures: Understanding Bank Owned (REO) Real Estate

Buying A REO

REO, or real estate owned, is the same as saying Buying a bank owned home- it is quite a bit different than the normal home buying process- different to the Buyer because the Buyer has fewer protections, different because Banks use their own forms severely limiting their liability, while at the same time reserving the right to sell it to another party until the day of closing, and a host of other terms that basically make the “Contract for Sale” a VERY one sided Contract. That said, the home is normally sold at a discount, sometimes a steep discount, and it isn’t unusual to buy a home out of foreclosure and gain instant equity.

The point  is there are trade offs and you or any buyer should be sure to understand the differences, the risks, and then take all necessary precautions. Your right to inspect is limited to 10 days in almost every case- and they typically do NOT do repairs, their addendum’s will specify, still there is no recourse so you MUST know confidently about the house. Similarly, your right to cancel due to lack of financing will be limited.

There is often the thought that a foreclosed home is, by definition, in horrible condition. While often true in the past, more and more we see homes in at least average or above average condition selling as a REO. You just need to look.

How Do I Search for REO property?

In the MLS, you have to review the Comments, and look for terms such as “As IS” or “Seller will make No Repairs”- the reason? The Carolina MLS doesn’t have a field to search for REO homes. You may also want to subscribe to Realty Trac, or, for the cheapest, find HUD homes on line.

Search For Charlotte Foreclosures inside Charlotte Homes for Sale

Frequently Asked Questions About REO Property

Pre-Foreclosure vs Short Sales vs. REO

Pre-foreclosure means a notice has been sent by the bank of the default and their intent to foreclose, however, it doesn’t mean it will reach foreclosure, and the owners still have rights and the possibility of making it right. REO stands for Real Estate owned, and is what happens AFTER the lender forecloses, and the home was NOT sold at auction, so the bank/lender bought it up at its note amount. REO is another name for bank owned property. A short sale occurs prior to the actual foreclosure, and the sale is “short” when the sales price minus commissions won’t pay off the existing note, in other words the Seller owes more than the (net) value of the house sales contract. To do this, the bank agrees to accept less than what is owed on the property, and give up their claim against the seller. The discussion on this page refers to REO property- not short sale or pre-foreclosure- and it is our belief that short sales, while potentially offering a win/win, rarely lead to a sale in the Charlotte market because our real estate values have held, and the banks knowing this, usually feel they’ll do better in a foreclosure. The Bank incentives could change if Congress passes the so-called “cram-down” legislation, until then, we’ll work the REO side only.

Foreclosures are Exempt From Disclosure

Whenever anyone sells a house in North Carolina, they must by law give the buyer a signed Disclosure Statement of known defects. This document describes what is in the house, any known issues, and other legal and environmental disclosures. The typical seller has to tell you about any defects he knows about, especially if they are hidden and you might not see them. The seller can be held liable for defects that appear later that were not disclosed when you bought the house. However, there arfe a few exceptions, and REO property is one. Banks are exempt and WON’t give you a Disclosure Statement. For this reason it is absolutely imperative that you do a thorough inspection visually, the with a licensed inspector, and possibly a contractor to do an estimate of any work involved to make necessary repairs. It is best to inspect prior to making an offer, but most banks offer a 1o day inspection perios, and won’t do repairs, but you can take the home off the market while you perform inspections.

Verbal Counter-Offers

After the initial offer is made in writing, counter offers are made verbally until agreement is reached. This is a slower process than a local seller because the bank works bankers hours, may be in a different time zone, or the responsible people are tied up in meetings. It may be 3-7 days before a signed agreement is complete, and then and only then is ther an agreement. During that time, there is the possibility that another offer will come in better than your offer and the bank may accept it. This is especially likely to happen if negotiations stretch over many days or a weekend when more prospective buyers are out looking. The general rule is to try to reach contractual agreement with the least amount of counters. If you are eager to get the property, bring your strongest offer quickly!

Possible Double Pre-Approval/Loan Applications

The bank may require that you get pre-approved with their institution within a few days of accepting your offer. They may or may not want the loan, but they do want to see you are qualified. They can’t force you to take their loan.

Bank MAY Require Their Choice of Closing Attorney’s

Some Banks require this in their Addendum. Understand, if that is the case, you have no representation. We strongly recommend you retain your own attorney for the closing, typically the cost will be no more than $3-500. This is not to be confused with the “closing costs”- it is an additional fee but well worth it. In the typical NC closing, the Buyer picks the attorney, and that attorney jointly represents the lender and buyer, whose interests are simialr. In a REO where the Seller chooses the closing attorney, a Buyer must obtain their own attorney to represent their interest.

Not The Usual Contract-Understand the Addendum

The bank will require their addendum to modify our standard resale contract. Generally, they will accept our standard contract and then add their contract “addendum” when agreeable terms on price and closing have been reached. Their addendum frequently gives them more rights, so please read it carefully, and if you have any questions consult your attorney. Typically, they are in readable English, and won’t accept substantial changes, but you need to read ever line as they have a bad habit of slipping something in somewhere.

Multiple Offer Situations

Often times a foreclosure home is priced so well that several buyers may put offers on the same property. Yes even in this market! In this case all buyers will be notified by the listing agent and they will be asked to communicate their “Highest and Best Offer.” Normally there will be a deadline, say”Highest and Best to the Seller’s Agnet by 6PM ptday. ” At the time that all offers are received, the Listing agent will forward them on to the Seller. The seller will then choose which offer he/she deems to be the best overall offer, and will then finalize negotiations with this buyer individually. The bank is under no obligation to give any party “first position” or an opportunity to beat the other offers regardless of how long your offer was in negotiation prior to other offers coming in. This is why it’s important to bring your strongest offer and reach an acceptance in the shortest about of negotiation time.

More FAQ’s About REO Property

What does REO mean?

Real Estate Owned.

Are these short-sale, sold at auction or VA owned properties?

NO. These are REO properties—foreclosure means the legal process of foreclosure is completed, the bank has cleared, or will clear the liens, and issue a Special Warranty Deed.

Are any of your properties available for rent/lease/rent-to-own?

NO. Banks only want to sell.

How long will it take to get a response from the Seller?

Responses are generally received within 1-5 days, each bank and each house is different. The Listing agent has no ability to affect Seller’s response time.

Can you push the Seller for a faster response— I’m in a hurry?

No.

Does the Seller have a survey/plat/inspection of the property?

No, but normally these are availabe online through local online resources- check with us, we can show you where to find it.

Do you know the ???fill in the blank about property condition

NO. Property was acquired by the Seller through foreclosure. Neither the Seller nor the listing Agent has any specific knowledge of the property history or condition.

Can the contract be contingent on a home sale?

NO.

Will the Seller allow early possession?

NO. And in North Carolina closing does not occur until the home has been recorded. For that reason, we try and sign papers early in the day, so it can be recorded the same day, and the Buyer can take possession.

Will the Seller allow estimates or repairs prior to closing?

Yes, at Buyers expense.

Can I give the bank a verbal offer?

NO. No NO! The Seller requires an offer in writing, with a copy of the Earnest Money, Pre-approval or Pre-Qual or Proof of Funds, and frequently more. There is no short cut there- in fact you want an Agent who is thorough and gives the bank EVERYTHING it requests, otherwise you can lose the house while your paperwork is being perfected.

Will the Seller turn on utilities prior to contract so inspections may be conducted?

Yes, in most cases the Seller is willing to accommodate, some charge a fee to re-winterize. Please contact the Listing Agent, or your Buyer Agent, if you wish to arrange inspections prior to contract. This is a vital part of consumer protection and despite the fees, it IS ABSOLUTELY NECESSARY as there is NO recourse against the seller, for any reason. The home is sold “As IS Where IS” and they make it air-tight.

Should I write in the contract personal property/fixtures to convey?

Yes. Just as a double check, since we are on the Banks side of foreclosure- just for the Buyers protecton.

Do you work with investors?Are there any special Investor concerns?

Yes we work with investors, and no there are no special considerations, except in our case the numbers tell the biggest story once the house hsa met minimal levels. If you intend to re-sell right away, check your lenders “seasoning” requirements.